Facebook has partnered with Zip to allow businesses to use the buy now, pay later service to purchase advertising on its platform.
The deal, a first for Facebook, will be available to small and medium-sized businesses in Australia. The service is currently in testing, with a controlled, staged roll-out to come, starting with Facebook pre-paid advertisers.
“With 14 million Australians using Facebook every day, the social network is an increasingly important advertising channel for small businesses,” says Zip cofounder and COO Peter Gray.
“Providing Zip as a payment option makes Facebook advertising even more accessible and valuable to business owners and helps smooth their cash-flow. Small businesses are a crucial part of the Australian economy, making up almost 98% of the business sector.
“For many of these businesses, cash-flow is a primary concern, and 92% of small businesses believe they would have generated more revenue in the previous year if their cash-flow was better. Partnering with Facebook is an important step not only in the expansion of Zip Business, but in helping small business owners to capitalise on recent growth in the ecommerce sector and to get ahead.”
Revenue from small and medium-sized businesses has been increasingly important for Facebook, with CEO Mark Zuckerberg stating that they were the primary drivers of growth for the social media platform. In the company’s quarter two results last year, just 16% of its ad revenue came from its top 100 advertisers.
Brands have also been increasingly turning to social media platforms to reach consumers who have been spending more time online during the pandemic.
“Small to medium businesses are the heartbeat of the Australian economy,” says Facebook AUNZ director Paul McCrory.
“When businesses succeed the entire community benefits. We are excited to launch the buy now pay later advertising payments integration, that will help businesses access capital to grow. This innovation, coming directly from Australia, holds great potential to ensure small business thrives.”
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